Note 14 - Information by Operating Segment

12 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

14. INFORMATION BY OPERATING SEGMENT

The Company has three reportable segments: Gas Utility, Gas Marketing, and Midstream. The Gas Utility segment is the aggregation of the operations of the Utilities. The Gas Marketing segment includes the results of Spire Marketing, a subsidiary engaged in the non-regulated marketing of natural gas and related activities, including utilizing natural gas storage contracts for providing natural gas sales. The Midstream segment includes Spire STL Pipeline and Spire MoGas Pipeline, subsidiaries of Spire providing natural gas pipeline transportation services, and Spire Storage, a subsidiary of Spire providing interstate natural gas storage services. Other components of the Company’s consolidated information include Spire’s subsidiaries engaged in the operation of a propane pipeline and risk management, among other activities, and unallocated corporate items, including certain debt and associated interest costs.

Accounting policies are described in Note 1, Summary of Significant Accounting Policies. Intersegment transactions include sales of natural gas from Spire Marketing to Spire Missouri and Spire Alabama, sales of natural gas from Spire Missouri to Spire Marketing, sales of natural gas from Spire Alabama to Spire Marketing, propane transportation services provided by Spire NGL Inc. to Spire Missouri, and propane storage services provided by Spire Missouri to Spire NGL Inc.

Management evaluates the performance of the operating segments based on the computation of adjusted earnings. Adjusted earnings exclude from reported net income, as applicable, the after-tax impacts of fair value accounting and timing adjustments associated with energy-related transactions, the impacts of acquisition, divestiture and restructuring activities, and the largely non-cash impacts of other non-recurring or unusual items such as certain regulatory, legislative or GAAP standard-setting actions.

	Gas		Gas
2024	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers		2,436.2		99.2		56.9		0.7			—		$	2,593.0
Intersegment revenues		1.7		—		43.8		16.9			(62.4	)		—
Total Operating Revenues		2,437.9		99.2		100.7		17.6			(62.4	)		2,593.0
Depreciation and amortization expense		263.6		1.5		12.8		0.5			—			278.4
Interest expense		147.3		—		7.0		93.1			(46.3	)		201.1
Income tax expense (benefit)		48.0		10.8		9.6		(9.7	)		—			58.7
Adjusted earnings (loss)		220.8		23.4		33.5		(30.3	)		—			247.4
Capital expenditures		691.1		0.1		171.3		—			(1.2	)		861.3

	Gas		Gas
2023	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers	$	2,456.6	$	179.1	$	29.9	$	0.7		$	—		$	2,666.3
Intersegment revenues		0.3		—		36.2		16.0			(52.5	)		—
Total Operating Revenues		2,456.9		179.1		66.1		16.7			(52.5	)		2,666.3
Depreciation and amortization expense		244.4		1.5		8.4		0.5			—			254.8
Interest expense		139.9		—		8.6		72.1			(34.9	)		185.7
Income tax expense (benefit)		32.7		12.8		3.8		(10.5	)		—			38.8
Adjusted earnings (loss)		200.5		47.6		14.1		(34.1	)		—			228.1
Capital expenditures		588.6		0.4		73.6		(0.1	)		—			662.5

	Gas		Gas
2022	Utility		Marketing		Midstream		Other			Eliminations			Consolidated
Revenues from external customers	$	1,945.6	$	234.9	$	17.4	$	0.6		$	—		$	2,198.5
Intersegment revenues		0.5		—		35.7		15.5			(51.7	)		—
Total Operating Revenues		1,946.1		234.9		53.1		16.1			(51.7	)		2,198.5
Depreciation and amortization expense		227.9		1.4		7.5		0.5			—			237.3
Interest expense		86.4		—		4.9		37.3			(8.8	)		119.8
Income tax expense (benefit)		49.6		11.9		4.5		(7.1	)		—			58.9
Adjusted earnings (loss)		202.7		27.0		11.1		(24.5	)		—			216.3
Capital expenditures		528.6		0.9		22.6		0.1			—			552.2

Total Assets at End of Year	2024			2023			2022
Gas Utility	$	8,767.2		$	8,486.7		$	8,042.8
Gas Marketing		206.1			332.0			638.7
Midstream		903.4			574.3			446.0
Other		2,689.8			2,533.3			2,705.5
Eliminations		(1,705.8	)		(1,612.7	)		(1,749.3	)
Total Assets	$	10,860.7		$	10,313.6		$	10,083.7

Reconciliation of Consolidated Net Income to Consolidated Adjusted Earnings	2024			2023			2022
Net Income	$	250.9		$	217.5		$	220.8
Adjustments, pre-tax:
Fair value and timing adjustments		(12.4	)		11.4			(11.4	)
Acquisition and restructuring activities		7.6			2.5			—
Income tax adjustments		1.3			(3.3	)		6.9
Adjusted Earnings	$	247.4		$	228.1		$	216.3